Anand Rathi's research report on Greenlam Industries
Greenlam’s Q2 revenue climbed 12.8% y/y to Rs6.8bn. The 52% gross margin was broadly the same. EBITDA rose 7.7% y/y to Rs 814m, while PAT was significantly down 11.6% y/y to Rs 345m on higher depreciation and interest due to the commissioning of projects. Laminate production and sales (volumes and value) were the highest. The Rs9.9bn net debt included Rs4.8bn raised for the particle board project in Naidupeta, AP, expected to start commercial production in Q3 FY25.
Outlook
At the CMP the stock trades at 48.9x/29.3x/20.8x FY25e/FY26e/FY27e earnings. We retain our Buy recommendation with a higher 12-mth TP of Rs801, 30x FY27e earnings (earlier Rs771, 40x FY26e).
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